Location: Lee County, IL | Metro: Lee County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 61057 focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $920. However, the market rent data is currently unavailable, which makes it challenging to provide a precise percentage gap or a direct comparison. Despite this limitation, the implications of the FMR can still be explored in the context of the local rental market.
In ZIP 61057, the rental market is unique due to the low percentage of renters—only 0.0%. This indicates that homeownership is prevalent, with a median home value and median income data points also being unavailable. Such conditions suggest a potentially affluent community where homeownership is favored over renting. For landlords and small-portfolio investors, the presence of Section 8 voucher holders can serve as a yield play when FMR exceeds the market rent. In this scenario, voucher tenants would cover the entirety of the $920 FMR, ensuring a stable and predictable income stream.
However, if the market rent were higher than the $920 FMR, accepting Section 8 tenants would mean foregoing the opportunity to charge more. This could translate into a loss of potential revenue for landlords and investors who might otherwise command higher rents in an open market. The cost of housing voucher tenants below open-market rates would thus be the difference between what could be charged and the fixed amount covered by the vouchers.
To make informed decisions, landlords and small-portfolio investors should consider the broader economic context of ZIP 61057. Given the high likelihood of homeownership dominating the landscape, the demand for rental properties may be limited. Therefore, relying on Section 8 vouchers as a consistent income source could be advantageous, especially if the market rent is indeed lower than the FMR. It's essential to understand that while voucher tenants guarantee a steady income, they also come with additional administrative requirements and regulations that must be adhered to.
Investors should also be aware that the FMR of $920 represents a federal guideline and does not necessarily reflect the true cost of maintaining and managing a rental property in ZIP 61057. Local maintenance costs, property taxes, and insurance premiums will impact the overall profitability of the investment. Engaging with local real estate agents or property management companies can provide insights into these costs and help in assessing whether the FMR adequately compensates for the expenses incurred.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.